Nasdaq PSX is reducing the complexity of its displayed-liquidity pricing, and the SEC notice offers a rare explanation of why: three higher-volume rebate tiers had gone unused for an extended period. A 6 November filing from Nasdaq PHLX removes the tiers and replaces them with a single credit of $0.0020 per executed share for qualifying displayed liquidity on PSX, irrespective of a member firm’s monthly consolidated-market share.[1]
Previously, the exchange offered four tiers: the base $0.0020 credit and higher $0.0030, $0.0032 and $0.0033 credits for members satisfying monthly consolidated-volume thresholds of at least 0.05%, 0.07% and 0.15%, respectively. It also provided a supplemental $0.00005 per-share credit where a firm supplied at least 0.10% of consolidated volume in both the preceding and current month. The new schedule eliminates that supplement too. A rebate is paid to an eligible member for providing liquidity; it is not a retail commission discount automatically passed to end customers.[1]
Evidence, status and operating implications
| Issue | Verified position |
|---|---|
| SEC release | 34-106842, published 6 November 2026 |
| Venue and schedule | Nasdaq PSX / PHLX Equity 7 Section 3 |
| Prior displayed tiers | $0.0020, $0.0030, $0.0032, $0.0033 per share |
| Retained credit | $0.0020 per executed share of qualifying displayed liquidity |
| Removed supplement | $0.00005 per executed share |
| Status | Effective upon filing; operative 2 November 2026 |
| Usage context | Exchange says the eliminated higher tiers had zero utilisation for an extended period |
What the unused tiers say about routing economics
The exchange says the three eliminated higher tiers recorded zero usage over an extended period. Thus the distinction between the nominal maximum $0.0033 maker credit and the actual incentive accessed by firms matters. An attractive number displayed in a fee schedule does not affect realised revenue unless market participants meet its volume conditions and the relevant executions occur. The issuer says removing these unused credits simplifies administration rather than changing the economics of a successfully used tier.[1]
The SEC notice records that the fee amendments were effective upon filing and operative from 2 November, though the notice itself is dated 6 November. Those dates should not be collapsed into one supposed day of market impact. Broker order-routing teams evaluating economics across venues still need to consider taker fees, queue position, fill probabilities, adverse selection and rebates actually earned. A price-sheet change, however transparent, does not prove an improvement or deterioration in customer execution quality.[1]
For data providers and algorithmic execution firms, the relevant update is a simpler PSX fee schedule and an end to dormant volume incentives. It is a different development from PHLX abandoning the unreleased CORE FIX connectivity project: one adjusts exchange transaction credits, while the other removes a future order protocol. Both reflect exchange decisions to avoid maintaining features that market participants are not using.[1]
Sources & further reading
- Release 34-106842, Nasdaq PHLX Equity 7 Section 3 maker rebates US Securities and Exchange Commission · 6 Nov 2026 · Accessed 7 Nov 2026